Signed up for ESOP at my previous employer. At the time I quit, they were managed by a different company (Computershare) They recently transferred to Equate+.
Equate+ states that terminated employees are required to sell within 90 days of termination or they will sell on your behalf by "X" date.
To my knowledge, Computershare never had this clause. My spouse also contributed to ESOP, but terminated employment early last year (before Equate+ took over) They got the notice of requirement to sell and their shares were sold on their behalf. I have not received this notice and I'm still receiving dividends. It has been 2 years since I terminated employment.
It's not a huge sum of money, but the price has gone up significantly since I quit, and if I can ride it out I'd like to. Am I risking losing most of it if I don't sell soon?
ESOP after Termination. Did I slip through the cracks?
byu/Purple_Reflection790 inpersonalfinance
Posted by Purple_Reflection790
1 Comment
What matters is what contracts you agreed to, not what policies they have in place today (unless they required your agreement to those new policies to continue to manage your ESOP). If nothing you signed or agreed to includes a forced sale provision or binds you to any future changes in policy then they shouldn’t have defensible grounds to enforce that policy against you.
If it’s not a large sum of money then it may be a difficult thing to challenge, but the stock you own should be handled under the terms you have agreed to and not ones implemented after your departure.